I. Registration Fees.
- Investment Adviser: $200.
- Investment Adviser Representative: $50.
II. Financial & Bonding Requirements. All IAs are required to maintain a minimum net worth of $15,000. IAs without custody are required to submit a balance sheet in accordance with GAAP. IAs with custody must submit an audited balance sheet, except that an IA in existence less than a year must submit an unaudited balance sheet within 30 days of filing, certified by an executive officer and accompanied by a designation of the accountant who will perform the applicant’s first annual audit.
III. Sole Proprietorships. If an IA is a sole proprietorship, the sole proprietor must register as both an investment adviser (IA) and as an investment adviser representative (RA), and the normal fees apply for both registrations. The sole proprietor must submit a Form U4 for the RA.
IV. De Minimis. Persons domiciled in Tennessee are not required to register as investment advisers if they have fewer than 15 clients during the course of the preceding twelve months; are not holding themselves out as IAs; do not act as investment advisers to any investment companies registered under the Investment Company Act; are not registered agents, partners, officers, directors, or principals of any registered broker-dealers; and are not partners, officers, directors, contracted representatives, or non-clerical, non-ministerial employees of any registered investment advisers. An IA with no place of business in Tennessee is not required to register if it has no more than five clients in Tennessee during any twelve consecutive months; or if its only clients in Tennessee are broker-dealers, institutional investors, or other investment advisers.
V. Other Required Documents.
- Consent to service (included in Form ADV).
- List of branch offices in the state (included in Form ADV).
- Certificate of formation/articles of incorporation and bylaws/operating agreement.
- Applicant website (if applicable; included in Form ADV).
- Client Contract.
For additional information, please contact:
Steven Patterson
Senior Securities Examiner
Tennessee Securities Division
10th Floor, Davy Crockett Tower
500 James Robertson Parkway, Nashville, TN 37243
615-532-3951
Email
Division website
